PAUL CULLEN Consumer Affairs Correspondent
RETAIL GIANT Tesco makes greater profits in Ireland than in any other part of its global empire apart from South Korea, according to a new report.
Tesco Ireland’s profit margin will rise in the current financial year to over 7 per cent, despite the economic downturn and the slump in the grocery trade, the report by UK stockbroker Shore Capital forecasts.
The figure is relatively high for the traditionally high-volume, low-margin retail sector. The Irish Ebit (earnings before interest and taxes) margin of 7.2 per cent is the highest in Europe, and compares with 7 per cent in Poland and less than 5 per cent in Hungary and the Czech and Slovak republics. Only South Korea, with a margin of 7.4 per cent, is outperforming Ireland.
